This archive report was first published on 3 July 2020.
On July 3, 2020, the Central Bank of Kenya reported a slight increase in the money in circulation, rising to Sh198.3 billion in March.
This increase was accompanied by a 1.79 percent or Sh23 billion increase in demand deposits, reaching Sh1.306 trillion.
According to Genghis Capital head of research Churchill Ogutu, the growth in demand deposits is driven by precautionary savings, as households and corporates remain cautious in the uncertain environment.
As the Covid-19 pandemic continues, Kenyans are expected to turn to mobile payments, potentially leading to a further dip in the money in people's hands in the second quarter.
Foreign currency deposits also saw an increase, rising to Sh642 billion in March from Sh626 billion in February, as traders seek to hedge against possible exchange rate depreciation.
